No definitive decision on German aid for Opel… yet!

Article by Christian Andrei, on August 27, 2010

The future of thousands of workers at the Opel unit of General Motors Co. remains undetermined. A steering committee is set to meet on Tuesday to discuss if it will recommend that taxpayers' money be used to provide loans to Opel to fund about 8,300 job cuts.

However, Economy Minister Rainer Bruederle said no decision is expected with regards to the German aid that the GM unit has been asking for.

If granted, the state aid worth about 1.3 billion euros ($1.6 billion) will be used by Opel to become profitable once again after about 12 months.

In an interview at Brussels, Bruederle said that the committee isn't likely to arrive at "a definitive decision" during the meeting.

GM is willing to contribute only half of the 3.7 billion euros that Opel requires, saying that European taxpayers should handle this problem since after all, Opel is a European carmaker.

The senior members of the German government will consider the affected states in making its final decision. Up to 120,000 jobs in Germany alone are at stake here.

According to German business daily Handelsblatt, three of four German states with Opel plants are prepared to grant guarantees to GM.

Handelsblatt said that its government sources have pointed to the states of Rhineland-Palatinate, Thuringia and North Rhine-Westphalia to be willing to back these guarantees. Hesse had held back. This definitely raises the pressure on Chancellor Angela Merkel to grant GM's request. [via autonews - sub. required]

Topics: opel, germany

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Acura fans and customers rejoice! Sales have begun for the flagship model of Acura’s RLX top-of-the-range sedan – the 2017 Acura RLX Sport Hybrid. Described by Acura as its most...
by - December 6, 2016
Autonomous cars are slowly but surely gaining more appeal among drivers around the world. While a complete self-driving system has yet to be launched, carmakers have been finding ways to...
by - December 6, 2016
BMW has officially ended the production cycle for what is considered as its meanest and fastest sports car – the BMW M4 GTS. Basically a power-up evolution of the BMW...
by - December 6, 2016
Now that Lamborghini is set to bring a “more aggressive” Aventador, it only makes sense that it will be given a name. Seeing how it goes, perhaps we won’t be...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries